Leonardo DRS, Inc. (NASDAQ:DRS) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Leonardo DRS has an average analyst rating of “Moderate Buy” from six covering analysts, with a consensus 12-month price target of $53.75.
• The company recently reported strong quarterly results, including EPS of $0.26 versus estimates of $0.21 and revenue of $846 million versus expectations of $825.05 million.
• Despite the positive outlook, there has been notable insider selling, including recent share sales by senior executives, while institutional investors continue to hold about 18.76% of the stock.

Shares of Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) have been given an average rating of "Moderate Buy" by the six analysts that are covering the company, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $53.75.

DRS has been the topic of several research reports. Wall Street Zen raised Leonardo DRS from a "hold" rating to a "buy" rating in a research report on Sunday, May 10th. Truist Financial upgraded Leonardo DRS to a "strong-buy" rating in a research note on Friday, May 1st. Canaccord Genuity Group boosted their price target on Leonardo DRS from $52.00 to $54.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Weiss Ratings cut Leonardo DRS from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Finally, Bank of America boosted their price target on Leonardo DRS from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, March 25th.

Leonardo DRS Price Performance

Shares of Leonardo DRS stock opened at $42.67 on Wednesday. Leonardo DRS has a twelve month low of $32.43 and a twelve month high of $50.59. The stock has a market capitalization of $11.38 billion, a P/E ratio of 39.88, a PEG ratio of 2.95 and a beta of 0.34. The company has a current ratio of 1.86, a quick ratio of 1.52 and a debt-to-equity ratio of 0.05. The business's fifty day moving average price is $44.19 and its 200 day moving average price is $42.31.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $0.26 earnings per share for the quarter, beating analysts' consensus estimates of $0.21 by $0.05. Leonardo DRS had a return on equity of 12.02% and a net margin of 7.85%.The firm had revenue of $846.00 million for the quarter, compared to analysts' expectations of $825.05 million. During the same quarter last year, the firm earned $0.20 earnings per share. The firm's revenue for the quarter was up 5.9% compared to the same quarter last year. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. As a group, research analysts anticipate that Leonardo DRS will post 1.3 earnings per share for the current year.

Leonardo DRS Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th were issued a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, May 19th. Leonardo DRS's payout ratio is currently 33.64%.

Insider Transactions at Leonardo DRS

In related news, EVP Sally Wallace sold 1,300 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $50.00, for a total value of $65,000.00. Following the completion of the sale, the executive vice president directly owned 57,053 shares of the company's stock, valued at $2,852,650. The trade was a 2.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Pamela Morrow sold 11,545 shares of the business's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $45.13, for a total value of $521,025.85. Following the completion of the sale, the senior vice president directly owned 10,551 shares of the company's stock, valued at approximately $476,166.63. This represents a 52.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 97,530 shares of company stock valued at $4,482,608 over the last 90 days. Corporate insiders own 0.25% of the company's stock.

Institutional Trading of Leonardo DRS

Hedge funds and other institutional investors have recently bought and sold shares of the company. Erste Asset Management GmbH grew its holdings in shares of Leonardo DRS by 503.6% during the fourth quarter. Erste Asset Management GmbH now owns 142,750 shares of the company's stock valued at $4,872,000 after purchasing an additional 119,100 shares during the last quarter. Stephens Investment Management Group LLC grew its holdings in shares of Leonardo DRS by 24.8% during the fourth quarter. Stephens Investment Management Group LLC now owns 1,020,223 shares of the company's stock valued at $34,779,000 after purchasing an additional 202,758 shares during the last quarter. Swedbank AB grew its holdings in shares of Leonardo DRS by 1,026.0% during the fourth quarter. Swedbank AB now owns 96,205 shares of the company's stock valued at $3,280,000 after purchasing an additional 87,661 shares during the last quarter. AXQ Capital LP grew its holdings in shares of Leonardo DRS by 301.6% during the fourth quarter. AXQ Capital LP now owns 44,872 shares of the company's stock valued at $1,530,000 after purchasing an additional 33,699 shares during the last quarter. Finally, Norges Bank bought a new position in shares of Leonardo DRS during the fourth quarter valued at approximately $37,481,000. 18.76% of the stock is owned by institutional investors.

Leonardo DRS Company Profile

Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy's Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.

The company's portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.

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